Model Morgan Quinn will have charges of filing a false report about a robbery dropped after completing one day of community service.
The former Project Runway contestant hit headlines in October (13) after she was accused of lying about having her purse stolen by a homeless man two months earlier (Aug13).
She claimed the unknown assailant had threatened her with a sharp object while inside a New York building and demanded she hand over her handbag, which contained $300 (£188) in cash and a ring worth $2,000 (£1,250).
Investigators failed to find any evidence from security footage to support her claims and she was subsequently charged with fabricating the story.
However, Quinn celebrated a small victory in court on Wednesday (08Oct14), when prosecutors were forced to admit there was some truth to her claim.
Manhattan assistant district attorney Tricia Stolfi-Collins told the judge, "We believe that property was taken from the defendant, though not as was initially reported."
Prosecutors agreed to have the two counts of falsely reporting an incident in the third degree dismissed if Quinn completes a day of community work.
Meanwhile, the 31-year-old blonde insists police should focus on tracking down the real suspect.
She tells the New York Daily News, "They still haven't gone after the guy. I haven't looked at any photos (of suspects)."
Ahead of their upcoming tour, and prior to the release of their long awaited album, Smoke Fairies played a great warm-up gig at Elsewhere in Margate.